Language is a strong and robust determinant of international trade patterns: Countries sharing a common language trade … that this trade-promoting effect of language is likely to reflect cultural ties, rather than lower costs of communication … local dialect between regions have a sizable and significant positive impact on intra-national trade. We interpret this …

depends on its cost, trade frictions, and the dealers' ability to negotiate favorable terms of trade. Under Nash bargaining … bargaining power, resell it at a premium or a discount. The distribution of the terms of trade is non-degenerate unless storage …